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2011 SEMI ANNUAL REPORT

30 September 2011 (Unaudited)

Russell Investment Company plcan umbrella fund with segregated liability between sub-funds

The Continental European Equity Fund

The Emerging Markets Equity Fund

The Global Bond Fund

The Global Credit Fund

The Japan Equity Fund

The Pacifi c Basin Equity Fund

The Sterling Bond Fund

The Sterling Corporate Bond Fund

The U.K. Equity Fund

The U.K. Index Linked Fund

The U.K. Long Dated Gilt Fund

The U.S. Bond Fund

The U.S. Equity Fund

The U.S. Small Cap Equity Fund

The World Equity Fund II

African Frontiers Fund

Pan African Fund

RIC-OMIGSA Value Global Equity Fund

RIC-OMIGSA EAFE Equity Fund (ceased trading)

RIC-OMIGSA Global Bond Fund

RIC-OMIGSA Global Credit Fund

RIC-OMIGSA Global Equity Fund (ceased trading)

RIC-OMIGSA Quant Global Equity Fund

RIC-OMIGSA Internal Growth Global Equity Fund

RIC-OMIGSA Global REIT Fund

RIC-OMIGSA Global (ex U.S.) Bond Fund

RIC-OMIGSA Global Money Market Fund

RIC-OMIGSA U.S. Core-Bond Fund

RIC-OMIGSA U.S. Core Equity Fund (ceased trading)

RIC-OMIGSA U.S. Growth Equity Fund

RIC-OMIGSA U.S. Value Equity Fund (ceased trading)

RIC-OMIGSA Growth Global (ex U.S.) Equity Fund

RIC-Old Mutual MSCI Emerging Markets Index Fund

RIC-Acadian European Equity Fund

RIC-Acadian Global Equity Fund

RIC-Acadian Emerging Markets Equity Fund

Russell Investment Company plc Contents

Contents

Administration of the Company ........................................................................................................................... 3 Background to the Company ............................................................................................................................... 9 Combined Statements ......................................................................................................................................... 11 The Continental European Equity Fund .............................................................................................................. 14 The Emerging Markets Equity Fund .................................................................................................................... 32 The Global Bond Fund ........................................................................................................................................ 53 The Global Credit Fund ........................................................................................................................................ 105 The Japan Equity Fund ....................................................................................................................................... 131 The Pacific Basin Equity Fund ............................................................................................................................ 145 The Sterling Bond Fund ....................................................................................................................................... 164 The Sterling Corporate Bond Fund ..................................................................................................................... 183 The U.K. Equity Fund .......................................................................................................................................... 195 The U.K. Index Linked Fund ................................................................................................................................ 206 The U.K. Long Dated Gilt Fund ........................................................................................................................... 212 The U.S. Bond Fund ............................................................................................................................................ 218 The U.S. Equity Fund .......................................................................................................................................... 254 The U.S. Small Cap Equity Fund ........................................................................................................................ 266 The World Equity Fund II ..................................................................................................................................... 280 African Frontiers Fund ......................................................................................................................................... 307 Pan African Fund ................................................................................................................................................. 314 RIC-OMIGSA Value Global Equity Fund ............................................................................................................. 321 RIC-OMIGSA EAFE Equity Fund (ceased trading) ............................................................................................. 328 RIC-OMIGSA Global Bond Fund ......................................................................................................................... 331 RIC-OMIGSA Global Credit Fund ....................................................................................................................... 339 RIC-OMIGSA Global Equity Fund (ceased trading) ............................................................................................ 352 RIC-OMIGSA Quant Global Equity Fund ............................................................................................................ 355 RIC-OMIGSA Internal Growth Global Equity Fund ............................................................................................. 367 RIC-OMIGSA Global REIT Fund ......................................................................................................................... 376 RIC-OMIGSA Global (ex U.S.) Bond Fund ......................................................................................................... 384 RIC-OMIGSA Global Money Market Fund .......................................................................................................... 396 RIC-OMIGSA U.S. Core-Bond Fund ................................................................................................................... 407

Russell Investment Company plc Contents - continued

Contents

RIC-OMIGSA U.S. Core Equity Fund (ceased trading) ...................................................................................... 416 RIC-OMIGSA U.S. Growth Equity Fund .............................................................................................................. 419 RIC-OMIGSA U.S. Value Equity Fund (ceased trading) ..................................................................................... 426 RIC-OMIGSA Growth Global (ex U.S.) Equity Fund ........................................................................................... 429 RIC-Old Mutual MSCI Emerging Markets Index Fund ........................................................................................ 436 RIC-Acadian European Equity Fund ................................................................................................................... 455 RIC-Acadian Global Equity Fund ........................................................................................................................ 466 RIC-Acadian Emerging Markets Equity Fund ...................................................................................................... 478 Notes to the Financial Statements ...................................................................................................................... 492 Appendix I - Total Expense Ratio (Unaudited) .................................................................................................... 575 Appendix II - Portfolio Turnover Rates (Unaudited) ............................................................................................ 579

Russell Investment Company plc Administration of the Company

Administration of the Company 3

Board of Directors of the Company Global Sub-Custodian Mr. James Firn (Chairman) State Street Bank and Trust Company Mr. James Beveridge Copley Place Mr. Peter Gunning 100 Huntington Avenue Mr. Michael Hunt Boston, MA 02116 Mr. Paul McNaughton United States of America Mr. William Roberts Mr. Alan Schoenheimer Promoter Mr. David Shubotham Frank Russell Company Mr. Kenneth Willman 1301 Second Avenue Mr. Neil Jenkins (appointed 22 September 2011)* 18th Floor Seattle, WA 98101 Audit Committee Members United States of America Mr. David Shubotham (Chairman) Mr. Paul McNaughton Company Secretary Mr. William Roberts Bradwell Limited Arthur Cox Building Registered Office Earlsfort Centre 78 Sir John Rogerson’s Quay Earlsfort Terrace Dublin 2 Dublin 2 Ireland Ireland Manager Advisor and Distributor Russell Investments Ireland Limited Russell Investments Limited 78 Sir John Rogerson’s Quay Rex House Dublin 2 10 Regent Street Ireland London SW1Y 4PE England Independent Auditors PricewaterhouseCoopers Money Managers for The Continental European Equity One Spencer Dock Fund North Wall Quay DFA Capital Management Dublin 1 7 Down Street Ireland London W1J 7AJ England Legal Advisers Arthur Cox Invesco Asset Management Limited Earlsfort Centre 30 Finsbury Square Earlsfort Terrace London EC2A 1AG Dublin 2 England Ireland Liontrust Investment Services Limited Administrator 2 Savoy Court State Street Fund Services (Ireland) Limited London WC2R 0EZ 78 Sir John Rogerson’s Quay England Dublin 2 Ireland Metropole Gestion 9, rue des Filles, Saint-Thomas Custodian and Trustee 75002 Paris State Street Custodial Services (Ireland) Limited France 78 Sir John Rogerson’s Quay Dublin 2 Ireland * Prior to his appointment, Mr. Neil Jenkins acted as a permanent alternate Director for Mr. Peter Gunning.

Russell Investment Company plc Administration of the Company - continued

4 Administration of the Company

Numeric Investors, L.P. Colchester Global Investors Limited 1 Memorial Drive Heathcoat House Cambridge, MA 02142 20 Savile Row United States of America London W1S 3PR England Taube Hodson Stonex Partners, LLP Cassini House, 1st Floor Loomis, Sayles & Company, L.P. 57-59 St. James’s Street One Financial Center London SW1A 1LD Boston, MA 02111 England United States of America UBS Global Asset Management (Americas) Inc. Pacific Investment Management Company, LLC (“PIMCO”) One North Wacker Drive 840 Newport Centre Drive, Suite 300 Chicago, IL 60610 Newport Beach, CA 92660 United States of America United States of America Money Managers for The Emerging Markets Equity Fund Russell Implementation Services Inc. Alliance Bernstein Institutional Investment Management 1301 Second Avenue Devonshire House 18th Floor 1 Mayfair Place Seattle, WA 98101 London W1J 8AJ United States of America England Money Managers for The Global Credit Fund Arrowstreet Capital, L.P. Alliance Bernstein Institutional Investment Management 44 Brattle Street, 5th Floor Devonshire House Cambridge, MA 02138 1 Mayfair Place United States of America London W1J 8AJ England Genesis Asset Managers, LLP Bermuda House Loomis, Sayles & Company, L.P. Saint Julian’s Avenue One Financial Center St. Peter Port, Guernsey Boston, MA 02111 Channel Islands United States of America Harding Loevner Management, L.P. Pacific Investment Management Company, LLC (“PIMCO”) 50 Division Street, 4th Floor 840 Newport Centre Drive, Suite 300 Somerville, NJ 08876 Newport Beach, CA 92660 United States of America United States of America Somerset Capital Management, LLP Wellington Management Company, LLP 28 Ely Place 75 State Street London EC1N 6TD Boston, MA 02109 England United States of America UBS Global Asset Management (Americas) Inc. Money Managers for The Japan Equity Fund One North Wacker Drive Alliance Bernstein Institutional Investment Management Chicago, IL 60610 Devonshire House United States of America 1 Mayfair Place London W1J 8AJ Victoria 1522 Investments, L.P. England 244 California Street, Suite 610 San Francisco, CA 94111 Coupland Cardiff Asset Management, LLP United States of America 31-32 St. James’s Street London SW1A 1HD Money Managers for The Global Bond Fund England Brookfield Asset Management Inc. Three World Financial Centre JP Morgan Asset Management 200 Vesey Street, 10th Floor Finsbury Dials, 20 Finsbury Street New York, NY 10281-1010 London EC2Y 9AQ United States of America England



Lazard Asset Management, LLC TT International Asset Management 30 Rockefeller Plaza, 57th Floor Suites 1307 - 1308 New York, NY 10112 Two Exchange Square United States of America 8 Connaught Road Hong Kong Russell Implementation Services Inc. 1301 Second Avenue Money Managers for The Sterling Bond Fund 18th Floor Aberdeen Asset Management Seattle, WA 98101 21 Church Street United States of America 01-01 Capital Square Two Singapore 049480 Sumitomo Trust & Banking Co., Ltd. GranTokyo South Tower Fidelity International Limited 9-2, Marunouchi 1-chrome Pembroke Hall Chiyoda-ku 42 Crow Lane Tokyo 100-6611 Pembroke, Hamilton HM 19 Bermuda Zebra Capital Management, LLC 612 Wheelers Farms Road Western Asset Management Milford, CT 06461 155 Bishopsgate United States of America London EC2M 3XG England Money Managers for The Pacific Basin Equity Fund Aberdeen Asset Management Money Managers for The Sterling Corporate Bond Fund 21 Church Street Western Asset Management 01-01 Capital Square Two 155 Bishopsgate Singapore 049480 London EC2M 3XG Singapore England Balanced Equity Management Property Limited Investment Manager for The U.K. Equity Fund Level 35, 101 Collins Street Russell Implementation Services Inc. Melbourne, VIC 3000 1301 Second Avenue Australia 18th Floor Seattle, WA 98101 Coupland Cardiff Asset Management, LLP United States of America 31-32 St. James’s Street London SW1A 1HD Investment Advisor for The U.K. Equity Fund England Russell Investments Limited Rex House Havenport Asset Management Pte. Ltd. 10 Regent Street 8 Eu Tong Sen Street London SW1Y 4PE #21-96/97, Office 1 England The Central Singapore 059818 Money Manager for The U.K. Index Linked Fund Singapore Russell Investments Limited Rex House MIR Investment Management Limited 10 Regent Street Level 40, AMP Centre London SW1Y 4PE 50 Bridge Street England Sydney, NSW 2000 Australia Money Manager for The U.K. Long Dated Gilt Fund Russell Investments Limited Russell Implementation Services Inc. Rex House 1301 Second Avenue 10 Regent Street 18th Floor London SW1Y 4PE Seattle, WA 98101 England United States of America



Money Managers for The U.S. Bond Fund Pzena Investment Management Brookfield Asset Management Inc. 120 West 45th Street, 20th Floor Three World Financial Centre New York, NY 10036 200 Vesey Street, 10th Floor United States of America New York, NY 10281-1010 United States of America Russell Investments Limited Rex House Logan Circle Partners, L.P. 10 Regent Street 1717 Arch Street, Suite 1500 London SW1Y 4PE Philadelphia, PA 19103 England United States of America Sound Shore Management Pacific Investment Management Company, LLC (“PIMCO”) 8 Sound Shore Drive, Suite 180 840 Newport Centre Drive, Suite 300 Greenwich, CT 06830 Newport Beach, CA 92660 United States of America United States of America Suffolk Capital Management, LLC Western Asset Management 1633 Broadway, 40th Floor 155 Bishopsgate New York, NY 10019 London EC2M 3XG United States of America England Money Managers for The U.S. Small Cap Equity Fund Money Managers for The U.S. Equity Fund Buckhead Capital Management, LLC Columbus Circle Investors 3330 Cumberland Boulevard, Suite 650 One Metro Center Atlanta, GA 30339 One Station Place, 8th Floor South United States of America Stamford, CT 06902 United States of America ClariVest Asset Management, LLC 11452 E1 Camino Real, Suite 250 Cornerstone Capital Management Co. Inc. San Diego, CA 92130 7101 West 78th Street, Suite 201 United States of America Minneapolis, MN 55439 United States of America DePrince, Race & Zollo Inc. 250 Park Avenue, Suite 250 First Eagle Funds Winter Park, FL 32789 1345 Avenue of the Americas United States of America New York, NY 10105 United States of America Goodman and Company Investment Counsel Ltd. One Financial Place Institutional Capital Toronto 225 West Wacker Drive, Suite 2400 ON M5C2V9 Chicago, IL 60606 Canada United States of America Integrity Asset Management, LLC Levin Capital Strategies, L.P. 6100 Oak Tree Boulevard, Suite 200 595 Madison Avenue Independence, OH 44131 New York, NY 10022 United States of America United States of America Next Century Growth Investors, LLC MFS Institutional Advisors Inc. 5500 Wayzata Boulevard, Suite 1275 500 Boylston Street Minneapolis, MN 55416 Boston, MA 02116-3741 United States of America United States of America Summit Creek Advisors, LLC Montag and Caldwell Inc. 120 South Sixth Street, Suite 2200 3455 Peachtree Road NE, Suite 1200 Minneapolis, MN 55402 Atlanta, GA 30326-3248 United States of America United States of America



Money Managers for The World Equity Fund II Money Manager for RIC-OMIGSA Global Credit Goodman and Company Investment Counsel Ltd. Fund One Adelaide Street East Rogge Global Partners Plc 29th Floor Sion Hall, 56 Victoria Embankment Toronto ON5C 2V9 London EC4Y 0DZ Canada England Harris Associates, L.P. Money Manager for RIC-OMIGSA Quant Global Equity 2 North LaSalle Street, Suite 500 Fund Chicago, IL 60602 Acadian Asset Management United States of America One Post Office Square Boston, MA 02109 MFS Investment Management United States of America 500 Boylston Street Boston, MA 02116-3741 Money Manager for RIC-OMIGSA Internal Growth United States of America Global Equity Fund Copper Rock Capital Partners, LLC Sanders Capital, LLC 200 Clarendon Street 390 Park Avenue John Hancock Tower, 51st Floor New York, NY 10022 Boston, MA 02116 United States of America United States of America Tradewinds NWQ Global Investors, LLC Money Manager for RIC-OMIGSA Global REIT Fund 2049 Century Park East, 18th Floor Heitman, LLC Los Angeles, CA 90067 191 N.Wacker Drive United States of America Suite 2500 Chicago, IL 60606 T. Rowe Price Global Investment Services United States of America 60 Queen Victoria Street London EC4N 4TZ Money Manager for RIC-OMIGSA Global (ex U.S.) Bond England Fund Rogge Global Partners Plc Money Manager for African Frontiers Fund Sion Hall Old Mutual Long Term Equity Investments 56 Victoria Embankment West Campus Entrance 1 London EC4Y 0DZ Jan Smuts Place England Pinelands 7405 Money Manager for RIC-OMIGSA Global Money Market South Africa Fund Rogge Global Partners Plc Money Manager for Pan African Fund Sion Hall Old Mutual Long Term Equity Investments 56 Victoria Embankment West Campus Entrance 1 London EC4Y 0DZ Jan Smuts Place England Pinelands 7405 Money Manager for RIC-OMIGSA U.S. Core-Bond Fund South Africa Dwight Asset Management Company LLC 100 Bank Street, Suite 800 Money Manager for RIC-OMIGSA Value Global Burlington, VT 05401 Equity Fund United States of America Barrow, Hanley, Mewhinney & Strauss Inc. JP Morgan Chase Tower Money Manager for RIC-OMIGSA U.S. Growth Equity 2200 Ross Avenue, 31st Floor Fund Dallas, TX 75201 Ashfield Capital Partners, LLC United States of America 750 Battery Street, Suite 600 San Francisco, CA 94111 Money Manager for RIC-OMIGSA Global Bond United States of America Fund Old Mutual Asset Management (U.K.) Ltd. 2 Lambeth Hill London EC4V 4AD England



Money Manager for RIC-OMIGSA Growth Global (ex U.S.) Paying Agent and Centralising Agent in France Equity Fund Société Générale Walter Scott & Partners Limited 29, boulevard Haussmann One Charlotte Square 75009 Paris Edinburgh EH2 4DR France Scotland Paying and Information Agent in Germany* Money Manager for RIC-Old Mutual MSCI Emerging Deutsche Bank AG Markets Index Fund Junghofstrasse 5-9 Old Mutual Global Index Trackers (Pty) Limited 60311 Frankfurt am Main West Campus Entrance 1 Germany Jan Smuts Place Pinelands Representative in Italy 7405 BNP Paribas Securities Services, Milan branch South Africa Via Ansperto 5 20121 Milan Money Manager for RIC-Acadian European Equity Fund Italy Acadian Asset Management One Post Office Square Paying Agent in Italy Boston, MA 02109 SGSS S.p.A. United States of America Via Benigno Crespi, 19/A – MAC 2 20159 Milan Money Manager for RIC-Acadian Global Equity Fund Italy Acadian Asset Management One Post Office Square Information Agent and Representative in The Netherlands Boston, MA 02109 Deutsche Bank AG United States of America Amsterdam branch Herengracht 450 Money Manager for RIC-Acadian Emerging Markets 1017 CA Amsterdam Equity Fund The Netherlands Acadian Asset Management One Post Office Square Paying Agent in Switzerland Boston, MA 02109 BNP Paribas Securities Services, Paris United States of America succursale de Zurich Selnaustrasse 16 Paying and Information Agent in Austria 8002 Zürich UniCredit Bank Austria AG Switzerland Schottengasse 6-8 1010 Vienna Austria Representative in Switzerland** BNP Paribas Securities Services, Paris succursale de Zurich Selnaustrasse 16 8002 Zürich Switzerland * The Company’s Memorandum and Articles of Association, the prospectus, the simplified prospectuses, the unaudited semi-annual reports, as

well as the audited annual reports can be obtained free of charge from the office of the paying and information agent. The net asset value of each of the Funds and the subscription and redemption prices of the shares of the Funds are published jointly and daily in the “Börsen-Zeitung” for information purposes only and do not constitute an invitation to subscribe for or repurchase the Company’s shares at those prices.

** The Company’s Memorandum and Articles of Association, the prospectus, the simplified prospectus, the unaudited semi-annual reports, as

well as the audited annual reports can be obtained free of charge from the representative in Switzerland. Subscription and redemption prices of the shares of each Fund of the Company are published jointly and daily in Switzerland on Fund info (www.fundinfo.com) for information purposes only and do not constitute an invitation to subscribe for or repurchase the Company’s shares at those prices.

Russell Investment Company plc Background to the Company

Background to the Company 9

Russell Investment Company plc (the “Company”), was incorporated on 31 March 1994 and operates in Ireland as a public limited company under the Companies Acts, 1963 to 2009. It is authorised by the Central Bank of Ireland (the “Central Bank”) and it was first authorised on 11 April 1994. The Company is an open-ended investment company with variable capital which is authorised by the Central Bank under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (the “Regulations”). The Company is organised in the form of an umbrella fund with segregated liability between sub-funds and as at 30 September 2011 had forty constituent funds (each a “Fund” collectively the “Funds”). Investment Objectives Please see each Fund’s Money Manager’s Report for details of the investment objectives of the particular Fund. Net assets under management for our Funds at 30 September 2011 amounted to USD 17,552,503,428 (as at 31 March 2011: USD 21,062,597,930 and as at 30 September 2010 amounted to USD 19,650,803,857).

Fund Funded during the

year ended Functional Currency

Net Assets 30 September 2011

Net Assets 31 March 2011

Net Assets 30 September 2010

The Continental European Equity Fund 31 March 1998 EUR 441,713,790 650,327,012 640,551,968 The Emerging Markets Equity Fund 31 March 1995 USD 3,467,123,489 4,352,359,856 3,568,968,941 The Global Bond Fund 31 March 1995 USD 1,499,010,737 1,708,256,308 2,055,000,959 The Global Credit Fund 24 March 2010 USD 775,489,303 812,573,107 767,037,991 The Japan Equity Fund 31 March 1996 JPY 61,859,422,409 82,440,586,840 87,212,366,083 The Pacific Basin Equity Fund 31 March 1996 USD 467,370,038 620,588,913 818,638,886 The Sterling Bond Fund 31 March 1999 GBP 402,223,670 398,510,300 460,133,179 The Sterling Corporate Bond Fund 31 March 2003 GBP 35,689,225 172,103,325 178,434,787 The U.K. Equity Fund 31 March 1998 GBP 303,601,290 469,548,186 529,320,312 The U.K. Index Linked Fund 31 March 1999 GBP 106,698,807 115,217,214 111,389,931 The U.K. Long Dated Gilt Fund 31 March 2004 GBP 85,216,898 130,762,688 137,492,505 The U.S. Bond Fund 31 March 2002 USD 374,293,150 438,884,038 470,633,648 The U.S. Equity Fund 31 March 1998 USD 693,684,842 926,556,011 798,582,529 The U.S. Small Cap Equity Fund 31 March 1998 USD 200,160,962 249,164,453 230,650,144 The World Equity Fund II 31 March 2007 USD 1,968,866,806 2,454,701,299 2,116,036,262 African Frontiers Fund 31 March 2011 USD 47,848,094 60,826,540 60,950,973 Pan African Fund 31 March 2011 USD 8,058,776 10,357,691 10,046,372 RIC-OMIGSA Value Global Equity Fund 31 March 2003 USD 1,086,256,053 1,038,957,351 483,026,664 RIC-OMIGSA EAFE Equity Fund* 31 March 2003 USD - - - RIC-OMIGSA Global Bond Fund 31 March 2003 USD 127,426,306 130,443,116 130,427,897 RIC-OMIGSA Global Credit Fund 31 March 2009 USD 112,480,551 119,336,246 118,274,917 RIC-OMIGSA Global Equity Fund** 31 March 2003 USD - - 925,264,231 RIC-OMIGSA Quant Global Equity Fund 31 March 2011 USD 1,083,479,496 1,242,867,845 1,240,105,232 RIC-OMIGSA Internal Growth Global Equity Fund 31 March 2011 USD 96,760,684 115,975,321 - RIC-OMIGSA Global REIT Fund 31 March 2011 USD 110,543,145 103,502,591 - RIC-OMIGSA Global (ex U.S.) Bond Fund 31 March 2003 USD 204,408,785 201,393,380 188,880,552 RIC-OMIGSA Global Money Market Fund 31 March 2005 USD 124,912,394 191,540,948 187,194,392 RIC-OMIGSA U.S. Core-Bond Fund 31 March 2003 USD 70,826,598 100,982,352 111,156,557 RIC-OMIGSA U.S. Core Equity Fund* 31 March 2003 USD - - - RIC-OMIGSA U.S. Growth Equity Fund 31 March 2003 USD 649,256,148 688,907,362 377,933,330 RIC-OMIGSA U.S. Value Equity Fund** 31 March 2003 USD - - 419,121,039 RIC-OMIGSA Growth Global (ex U.S.) Equity Fund 31 March 2011 USD 716,172,946 712,226,659 - RIC-Old Mutual MSCI Emerging Markets Index Fund 31 March 2011 USD 57,196,106 74,308,854 - RIC-Acadian European Equity Fund 31 March 2007 EUR 35,578,383 44,218,540 40,223,001 RIC-Acadian Global Equity Fund 31 March 2007 EUR 136,234,861 150,764,919 119,710,796 RIC-Acadian Emerging Markets Equity Fund 31 March 2006 GBP 340,910,322 281,971,410 129,168,648 * The Fund ceased trading 22 April 2010. ** The Fund ceased trading 31 October 2010.

Russell Investment Company plc Background to the Company - continued

10 Background to the Company

The Eurozone Aggressive Equity Fund, The Global Real Estate Securities Fund, RIC-Acadian Emerging Markets Local Debt Fund and RIC-Acadian Global Managed Volatility Equity Fund remained unfunded as at 30 September 2011. All Funds with the prefix “RIC-OMIGSA” and “RIC-Acadian”, together with Pan African Fund, African Frontiers Fund and RIC-Old Mutual MSCI Emerging Markets Index Fund are referred to collectively as the RIC-OMIGSA Funds. All Funds other than the RIC-OMIGSA Funds are referred to as the RIC Funds. Introductory Manager’s Report Russell Investments Limited (the “Advisor”) is a pioneer in the innovative approach of multi-asset, multi-style and multi-manager diversification. The objective of these Funds is to deliver consistent and superior returns to investors using a multi-manager approach to reduce performance volatility. The Advisor seeks to achieve this in the Funds which primarily invest in equities, by building a portfolio where the market bets (sector, size, style and other biases) are controlled using portfolio analytics and simulation tools to check the “fit” between managers to whom the Fund’s assets are allocated, thereby minimising costly overlap. The main source of value-added for the Funds which primarily invest in equities is stock selection. The research of the Advisor indicates that this is the most reliable and consistent source of outperformance. The Advisor seeks to achieve the investment objective in the Funds which primarily invest in debt instruments by building a fund structure where the market bets (country, currency, duration, style and other biases) are controlled, using a team of managers with distinct and complementary investment approaches. The main sources of value-added for the Funds which primarily invest in debt instruments are currency and duration positions.

Russell Investment Company plc Combined Balance Sheet As at 30 September 2011

Combined Balance Sheet 11

Total 30 September 2011

(Unaudited) USD

Total 31 March 2011

(Audited) USD

Total 30 September 2010

(Unaudited) USD

Assets Financial assets at fair value through profit or loss ....................... 17,451,615,587 20,601,335,757 19,124,353,274 Cash at bank .................................................................................. 288,601,059 431,733,187 596,987,520 Cash held with brokers and counterparties for open derivative positions ......................................................................................... 68,028,852 85,179,144 79,238,449 Consolidated eSec SFT Fund and SFT Managed Account at fair value .............................................................................................. 10,805,737 5,486,183 26,099,996 Cash received as collateral and invested relating to securities lending transactions ....................................................................... 1,363,621,425 1,250,795,320 1,372,032,608 Broker cash held as collateral for financial derivative instruments transactions .................................................................................... 9,567,341 4,153,091 2,454,866 Debtors:

Receivable for investments sold ................................................ 162,684,817 154,113,013 307,388,730 Receivable on fund shares issued ............................................... 24,890,008 137,153,115 2,417,302 Dividends receivable .................................................................. 34,616,922 43,890,592 37,145,147 Interest receivable ...................................................................... 51,987,946 63,475,402 66,348,314 Management fee rebate receivable ............................................. 44,260 902,720 44,650 Receivable from Lehman ........................................................... 3,508,428 3,777,416 3,319,419

19,469,972,382 22,781,994,940 21,617,830,275 Liabilities Financial liabilities at fair value through profit or loss .................. (199,703,360) (83,525,047) (90,916,969) Creditors – amounts falling due within one year:

Cash due to brokers and counterparties for open financial derivative positions .................................................................... (1,530,369) (1,648,014) (22,067,797) Cash invested in eSec SFT Fund due to counterparties ............. - - (25,082,417) Cash due to counterparties for securities lending transactions ... (1,363,621,425) (1,250,795,320) (1,372,032,608) Broker cash due to counterparties for financial derivative instruments transactions ............................................................. (9,567,341) (4,153,091) (2,454,866) Payable to Lehman ..................................................................... (6,875,345) (6,828,507) (10,100,209) Payable for investments purchased ............................................ (352,088,910) (287,045,574) (457,174,875) Payable on fund shares redeemed .............................................. (3,224,358) (98,993,470) (1,674,212) Management fees payable .......................................................... (12,093,501) (14,519,267) (12,184,595) Custodian and Trustee fees payable ........................................... (204,458) (232,698) (210,287) Sub-custodian fees payable ........................................................ (1,116,756) (1,086,400) (992,504) Administration and transfer agency fees payable ...................... (357,619) (416,170) (372,944) Audit fees payable ...................................................................... (513,071) (886,194) (471,629) Miscellaneous fees payable ........................................................ (742,412) (881,263) (775,648)

(1,951,638,925) (1,751,011,015) (1,996,656,560) Net assets attributable to redeemable participating shareholders (at bid market prices) ........................................... 17,518,333,457 21,030,983,925 19,621,173,715 Adjustment from bid market prices to last traded market prices ............................................................................................. 34,169,971 31,614,005 29,630,142 Net asset value attributable to redeemable participating shareholders (at last traded market prices) .............................. 17,552,503,428 21,062,597,930 19,650,803,857

Russell Investment Company plc Combined Profit and Loss Account For the six months ended 30 September 2011

The accompanying notes are an integral part of the financial statements. 12 Combined Profit and Loss Account

Total Six months ended


USD

Total Year ended

31 March 2011 (Audited)

USD



USD Income

Dividends ................................................................................... 250,623,486 310,644,591 188,118,593 Bond interest .............................................................................. 95,226,644 198,373,978 99,782,608 Bank and short term investment interest .................................... 1,806,682 4,030,840 2,522,536 Securities lending income .......................................................... 5,792,176 7,840,567 5,046,522 Miscellaneous income ................................................................ 433,660 3,035,913 217,936

353,882,648 523,925,889 295,688,195 Net gain (loss) on investment activities ......................................... (3,141,087,160) 1,963,595,163 394,097,907 Total investment income (expense) ............................................ (2,787,204,512) 2,487,521,052 689,786,102 Expenses

Management fees ....................................................................... (84,248,810) (153,817,265) (70,460,098) Performance fees ........................................................................ (5,687) - - Custodian and Trustee fees ........................................................ (1,788,676) (3,542,308) (1,740,008) Sub-custodian fees ..................................................................... (3,757,604) (7,007,087) (3,348,391) Administration and transfer agency fees .................................... (4,403,070) (8,678,469) (4,269,566) Distributor fees .......................................................................... (590,078) (1,074,619) (454,055) Audit fees ................................................................................... (549,286) (886,194) (471,629) Professional fees ........................................................................ (862,691) (1,412,415) (770,413) Miscellaneous fees ..................................................................... (1,894,624) (3,852,168) (2,042,764) (98,100,526) (180,270,525) (83,556,924) Management fee rebate .............................................................. 156,474 286,038 108,299

Total operating expenses ............................................................. (97,944,052) (179,984,487) (83,448,625) Net income (expense) .................................................................... (2,885,148,564) 2,307,536,565 606,337,477 Finance costs

Distributions ............................................................................... (214,126,452) (297,827,740) (190,802,900) Interest expense .......................................................................... (222,356) (203,215) (161,392)

Profit (loss) for the financial period/year/period before taxation ......................................................................................... (3,099,497,372) 2,009,505,610 415,373,185 Taxation

Capital gains tax ......................................................................... (1,638,760) (3,743,342) (1,536,732) Withholding tax ......................................................................... (31,824,979) (44,615,125) (24,636,486)

Profit (loss) for the financial period/year/period after taxation ......................................................................................... (3,132,961,111) 1,961,147,143 389,199,967 Movement in adjustment from bid market prices to last traded market prices ................................................................... 2,555,966 2,922,206 (938,343) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................................... (3,130,405,145) 1,964,069,349 390,138,310 All amounts for the six months ended 30 September 2011 arose solely from continuing operations. There are no recognised gains or losses other than those dealt within the Profit and Loss Account.

Russell Investment Company plc Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2011

The accompanying notes are an integral part of the financial statements.

Combined Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders 13



USD

Total Year ended


USD



USD Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................................... (3,130,405,145) 1,964,069,349 390,138,310 Share transactions

Net increase (decrease) in net assets resulting from redeemable participating share transactions .................................................. (545,713,292) (255,849,942) 109,312,597 Reinvestment of deemed distributions on accumulation shares and hybrid accumulation shares ................................................. 197,891,562 275,540,622 175,616,049

Total net increase (decrease) in net assets attributable to redeemable participating shareholders ..................................... (3,478,226,875) 1,983,760,029 675,066,956 Currency translation (Note 2) ........................................................ (31,867,627) 337,878,415 234,777,415 Net assets attributable to redeemable participating shareholders

Beginning of period/year/period ................................................ 21,062,597,930 18,740,959,486 18,740,959,486 End of period/year/period .......................................................... 17,552,503,428 21,062,597,930 19,650,803,857

Russell Investment Company plc The Continental European Equity Fund Manager’s Report

14 The Continental European Equity Fund

Money Managers DFA Capital Management Invesco Asset Management Limited Liontrust Investment Services Limited Metropole Gestion Numeric Investors, L.P. Taube Hodson Stonex Partners, LLP UBS Global Asset Management (Americas) Inc. Investment Objective The Continental European Equity Fund (the “Fund”) seeks to achieve capital appreciation by investing in equity securities, including common stock, convertibles, American depository receipts, global depository receipts and warrants, listed on regulated markets in Europe (excluding the U.K.). Fund Performance During the six month period ended 30 September 2011, the Fund returned -21.2 per cent on a gross-of-fee basis (-21.5 per cent on a net-of-fee basis), while the benchmark* returned -19.6 per cent. Market Comment The Russell Developed Europe ex UK Large Cap Net Index performed broadly in line with its benchmark (0.2 per cent) in the second quarter of 2011. Gains were made in April as strong quarterly earnings results boosted performance. However, returns in May and June offset this performance. Portugal was being closely watched after the country accepted a EUR 26 billion loan from the IMF as part of a joint rescue package with the E.U. Sentiment was further hampered as ratings agency S&P downgraded Greek debt, making it the lowest-rated country in the world after Pakistan and Ecuador, which had been shut out of international markets after defaulting in 2009. The ratings agency considers that any attempt to ‘restructure’ its debt would be considered a default. The Greek parliament voted further austerity measures to help secure international financial aid. However, analysts remained cautious as these measures created political tension among the population which started violent protests in Athens. Meanwhile, the European Central Bank gave signs that interest rates may rise in the near future after an earlier increase to 1.25 per cent, marking an exit from crisis policy. At the sector level, health care and consumer goods stocks performed well while oil and gas and technology underperformed. It was a very poor third quarter of 2011 for European equities as the Russell Developed Europe ex UK Large Cap Net Index fell by 19.7 per cent. The eurozone debt crisis refused to abate, and the problems facing Greece threatened to engulf several other European economies, including Italy and even the French banks. With the notable exception of ‘safe haven’ Switzerland, it was an extremely weak quarter for every major European market. Germany’s Dax index lost 25 per cent of its value, its biggest fall since 2002. Europe’s biggest economy suffered amid signs that growth has slowed sharply and from fears it may be presented with a sizable bill for bailing out Greece. Banks came under selling pressure, especially in France. France’s AAA credit rating was called into question, as the market speculated that the cost of potential bailouts for Spain and Italy would add to the country’s large budget deficit. Owing to Greek debt exposure, shares in Société Générale fell by 51 per cent, its biggest quarterly loss ever, while BNP Paribas fell by over 40 per cent. The problems, however, weren’t confined to the banking sector. More than half of large European companies that reported profits in July fell short of market expectations, making it the most disappointing European earnings season since 2005. There was disappointing earnings news from, among others, Carlsberg, Nestle, Holcim, Heineken and UBS. General Comment on Money Manager/Performance The Fund finished behind the benchmark during the six month period, losing 1.6 per cent per annum. Quant manager Numeric Investors, L.P. was the best-performing Money Manager in the Fund during the period under review, as its multi-factor model drove positive stock selection in the financials and utilities sectors. The Money Manager has now recorded strong performance over all standard time periods. Deep value manager DFA Capital Management’s process went unrewarded during the period. An overweight to underperforming German and French automobiles, such as Daimler and Renault, had the largest negative impact on performance as the European debt impasse led to a sell off among Europe’s leading carmakers. Outlook The dominant characteristic of capital markets in 2010 was the tug-of-war between headline-grabbing risks and the less sensational, but far from trivial, global economic expansion and corporate earnings growth story. At Russell Investments, we think it is reasonable to expect a similar pattern in 2011. Our forecasts continue to suggest a slow, grinding economic recovery that will be the backdrop for strength in global corporate profits and strong corporate balance sheets. But we also expect periodic headline risks to cause volatility spikes, and that these are likely to punctuate capital market moves.

Russell Investment Company plc The Continental European Equity Fund Manager’s Report - continued

The Continental European Equity Fund 15

For 2011, we have identified a central (highest probability) scenario; the ‘square root sign-shaped recovery’ is likely to continue. We expect equity valuations to support some modest upside, with risky assets having a moderate year. We expect the risk of inflation in the U.S. to remain relatively benign, and that quantitative easing in late 2010 will succeed in avoiding deflation. And with deflation mostly off the table, we also expect that bond markets in the core will experience a mild sell off. Past performance is no indication of current or future performance. * Benchmark Source: The Russell Developed Europe ex UK Large Cap Net Index Russell Investments Ireland Limited November 2011

Russell Investment Company plc The Continental European Equity Fund Balance Sheet As at 30 September 2011

The accompanying notes are an integral part of the financial statements. 16 The Continental European Equity Fund


EUR


EUR


EUR Assets Financial assets at fair value through profit or loss (Note 1) ......... 434,155,125 642,154,879 632,518,809 Cash at bank (Note 5) .................................................................... 2,979,988 5,211,004 8,502,459 Cash held with brokers and counterparties for open derivative positions (Note 5) .......................................................................... 1,647,562 2,440,691 2,086,590 Consolidated eSec SFT Fund and SFT Managed Account at fair value (Note 4) ................................................................................ 1,726,192 880,098 4,409,214 Cash received as collateral and invested relating to securities lending transactions (Note 4) ......................................................... 21,447,668 35,510,141 35,278,169 Debtors:

Receivable for investments sold ................................................ 2,052,967 5,019,598 4,810,837 Receivable on fund shares issued .............................................. 229,090 133,324 - Dividends receivable ................................................................. 1,278,756 1,798,160 1,402,942

465,517,348 693,147,895 689,009,020 Liabilities Financial liabilities at fair value through profit or loss (Note 1) ... (144,608) (1,877,138) (2,910,552) Creditors – amounts falling due within one year:

Cash invested in eSec SFT Fund due to counterparties (Note 4) ...................................................................................... - - (4,293,914) Cash due to counterparties for securities lending transactions (Note 4) ...................................................................................... (21,447,668) (35,510,141) (35,278,169) Payable to Lehman (Note 16) .................................................... - - (276,931) Payable for investments purchased ............................................ (2,772,845) (3,850,646) (5,202,263) Payable on fund shares redeemed .............................................. (39,160) (969,434) (140,288) Management fees payable .......................................................... (384,724) (581,273) (504,873) Custodian and Trustee fees payable ........................................... (5,433) (8,172) (7,871) Sub-custodian fees payable ........................................................ (43,260) (52,327) (50,764) Administration fees payable ...................................................... (9,055) (13,782) (13,216) Audit fees payable ..................................................................... (15,984) (24,170) (14,307) Miscellaneous fees payable ....................................................... (18,284) (19,659) (24,444)

(24,881,021) (42,906,742) (48,717,592) Net assets attributable to redeemable participating shareholders (at bid market prices) ........................................... 440,636,327 650,241,153 640,291,428 Adjustment from bid market prices to last traded market prices (Note 6) ............................................................................... 1,077,463 85,859 260,540 Net asset value attributable to redeemable participating shareholders (at last traded market prices) ............................... 441,713,790 650,327,012 640,551,968

Russell Investment Company plc The Continental European Equity Fund Profit and Loss Account For the six months ended 30 September 2011



Six months ended 30 September 2011

(Unaudited) EUR

Year ended 31 March 2011

(Audited) EUR


(Unaudited) EUR

Income Dividends ................................................................................... 13,591,000 17,502,214 12,889,266 Bank and short term investment interest .................................... 8,592 6,509 2,696 Securities lending income (Note 4) ............................................ 1,185,219 1,205,417 1,018,989 Miscellaneous income ............................................................... - 5,587 -

14,784,811 18,719,727 13,910,951 Net gain (loss) on investment activities ......................................... (133,366,817) 58,729,749 (5,453,753) Total investment income (expense) ............................................. (118,582,006) 77,449,476 8,457,198 Expenses

Management fees (Note 3) ......................................................... (2,946,156) (6,387,419) (2,972,208) Custodian and Trustee fees (Note 3) .......................................... (54,096) (131,834) (65,720) Sub-custodian fees (Note 3) ....................................................... (173,497) (390,210) (202,279) Administration and transfer agency fees (Note 3) ..................... (142,107) (348,330) (176,142) Audit fees ................................................................................... (15,984) (24,170) (14,307) Professional fees ........................................................................ (32,720) (51,268) (33,088) Miscellaneous fees ..................................................................... (82,004) (163,310) (89,665)

Total operating expenses ............................................................. (3,446,564) (7,496,541) (3,553,409) Net income (expense) .................................................................... (122,028,570) 69,952,935 4,903,789 Finance costs

Distributions (Note 15) .............................................................. (8,659,121) (7,898,325) (7,898,174) Interest expense ......................................................................... (3,163) (4,176) (2,473)

Profit (loss) for the financial period/year/period before taxation ......................................................................................... (130,690,854) 62,050,434 (2,996,858) Taxation

Withholding tax (Note 7) ........................................................... (2,078,837) (3,386,474) (2,591,098) Profit (loss) for the financial period/year/period after taxation ......................................................................................... (132,769,691) 58,663,960 (5,587,956) Movement in adjustment from bid market prices to last traded market prices (Note 6) ..................................................... 991,604 (948,516) (773,835) Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................................... (131,778,087) 57,715,444 (6,361,791) All amounts arose solely from continuing operations. There are no recognised gains or losses other than those dealt within the Profit and Loss Account.

Russell Investment Company plc The Continental European Equity Fund Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the six months ended 30 September 2011



(Unaudited) EUR

Year ended 31 March 2011

(Audited) EUR


(Unaudited) EUR

Net increase (decrease) in net assets attributable to redeemable participating shareholders resulting from operations ..................................................................................... (131,778,087) 57,715,444 (6,361,791) Share transactions

Net increase (decrease) in net assets resulting from redeemable participating share transactions (Note 6) ................................... (85,126,673) (39,010,922) 15,291,268 Reinvestment of deemed distributions on accumulation shares (Note 15) .................................................................................... 8,291,538 6,930,687 6,930,688

Total net increase (decrease) in net assets attributable to redeemable participating shareholders ...................................... (208,613,222) 25,635,209 15,860,165 Net assets attributable to redeemable participating shareholders

Beginning of period/year/period ................................................ 650,327,012 624,691,803 624,691,803 End of period/year/period .......................................................... 441,713,790 650,327,012 640,551,968

Russell Investment Company plc The Continental European Equity Fund Schedule of Investments 30 September 2011



Number of Shares

Fair Value EUR

Fund %

Transferable Securities (93.91%) Common Stock (93.62%) Austria (1.26%) Building Products 18,871 Wienerberger ....................... 167,575 0.04 Construction and Engineering 4,238 Strabag SE ........................... 96,033 0.02 Iron and Steel 40,600 Voestalpine AG ................... 885,892 0.20 Machinery 47,424 Andritz AG .......................... 2,917,524 0.66 Oil and Gas 3,730 OMV AG ............................. 83,104 0.02 Postal Service 67,460 Oesterreichische Post AG .... 1,424,081 0.32 5,574,209 1.26 Belgium (2.93%) Banks

25 Banque Nationale de Belgique .............................. 53,599 0.01

91,682 KBC Group NV ................... 1,601,226 0.37 Beverages 32,897 Anheuser-Busch InBev ....... 1,307,491 0.30 Chemicals 22,284 Solvay SA ........................... 1,581,718 0.36

3,347 Tessenderlo Chemie International NV .................. 68,814 0.01

243

Tessenderlo Chemie International NV (Non-voting) ................................. 44 0.00

Construction and Engineering

795 Compagnie d'Entreprises CFE ..................................... 31,840 0.01

Distributors 1,400 D'Ieteren Trading ................ 52,514 0.01 Diversified Telecommunications 42,706 Belgacom SA ...................... 962,807 0.22 Electric Utilities 3,250 Elia System Operator SA .... 98,507 0.02 Electronic Equipment and Instruments 1,525 Barco NV ............................ 52,262 0.01 Food and Drug Retailing 26,408 Delhaize Group ................... 1,159,575 0.26 Insurance 1,817,769 Ageas ................................... 2,388,548 0.54 Leisure Equipment and Products 23,528 AGFA Gevaert NV .............. 45,879 0.01

5,882 AGFA Gevaert NV (Non-voting) ................................. 6 0.00

Media 22,134 Telenet Group Holding ........ 610,788 0.14 Metals and Mining 14,664 Nyrstar ................................. 97,193 0.02

Number of Shares

Fair Value EUR

Fund %

6,034 Nyrstar (Non-voting) .......... 6 0.00 16,901 Umicore SA ........................ 464,186 0.11

Pharmaceuticals 2,151 Omega Pharma .................... 74,210 0.02 8,722 UCB SA .............................. 279,540 0.06

Transportation Equipment 2,521 Euronav ............................... 10,866 0.00

Wireless Telecommunication Services 46,286 Mobistar .............................. 1,987,521 0.45

12,929,140 2.93 Bermuda (0.13%) Oil and Gas Services

26,128 BW Offshore Ltd ................ 34,165 0.01 198,620 Seawell Ltd ......................... 547,917 0.12

582,082 0.13 Cayman Islands (0.06%) Oil and Gas Services

20,792 Eurasia Drilling Co Ltd GDR .................................... 275,997 0.06

Cyprus (0.01%) Banks

65,931 Marfin Popular Bank PCL ..................................... 23,076 0.01

Czech Republic (0.08%) Banks

2,500 Komercni Banka A/S .......... 344,528 0.08 Denmark (1.88%) Banks

47,919 Danske Bank A/S ................ 505,837 0.11 Beverages

19,465 Carlsberg A/S ..................... 865,320 0.20 Biotechnology

42,690 Bavarian Nordic A/S ........... 230,053 0.05 23,400 Novo Nordisk A/S .............. 1,746,854 0.40

Communication Equipment 23,761 GN Store Nord .................... 109,558 0.02

Electrical Equipment 2,676 NKT Holding A/S ............... 72,463 0.02

Energy Equipment and Services

11,357 Vestas Wind Systems A/S ...................................... 138,582 0.03

Food Products 1,844 Ostasiatiske Kompagnie ..... 28,002 0.01

Health Care Equipment and Supplies 6,312 Coloplast A/S ...................... 679,448 0.15

Home Furnishings 4,587 Bang & Olufsen B Shares ... 36,986 0.01

Russell Investment Company plc The Continental European Equity Fund Schedule of Investments - continued 30 September 2011


Number of Shares

Fair Value EUR

Fund %

Materials 1,437 Auriga Industries ................. 14,290 0.00 Pharmaceuticals 11,370 H Lundbeck A/S .................. 161,966 0.04 Telecommunications 207,210 TDC A/S ............................. 1,258,653 0.29 Transport

12 AP Moeller - Maersk A Shares .................................. 50,443 0.01

525 AP Moeller - Maersk B Shares .................................. 2,321,197 0.53

2,867 D/S Norden ......................... 58,988 0.01 Transportation Equipment 2,785 Torm .................................... 2,639 0.00 8,281,279 1.88 Finland (2.84%) Commercial Services and Supplies 11,552 Cargotec OYJ ...................... 211,401 0.05 399 Cramo OYJ ......................... 2,526 0.00 Construction and Engineering 19,929 YIT ...................................... 225,596 0.05 Containers and Packaging 10,285 Huhtamaki ........................... 80,943 0.02 Diversified Telecommunications 189,723 Elisa Corp ............................ 2,908,453 0.66 152,650 Nokia OYJ ........................... 648,152 0.15 Electric Utilities 21,133 Fortum OYJ ......................... 372,152 0.08 Food and Drug Retailing 6,165 Kesko OYJ .......................... 142,658 0.03 Food Products 14,401 Raisio .................................. 34,274 0.01 Holding Companies - Diversified Operations 27,764 Ruukki Group ...................... 27,209 0.01 Insurance 28,753 Sampo OYJ ......................... 544,007 0.12 Machinery 11,327 Metso OYJ .......................... 249,987 0.06 Materials 12,357 Kemira OYJ ........................ 102,254 0.02 Media 6,873 Sanoma ................................ 60,826 0.01 Metals and Mining 14,787 Kone Corp OYJ ................... 527,600 0.12 261,575 Outokumpu OYJ ................. 1,296,889 0.29 Miscellaneous Manufacturers 95,822 Wartsila OYJ ....................... 1,715,214 0.39 Oil and Gas 11,409 Neste Oil OJY ..................... 74,330 0.02 Paper and Forest Products 54,558 Stora Enso OYJ ................... 241,146 0.06

Number of Shares

Fair Value EUR

Fund %

359,922 UPM Kymmene OYJ .......... 3,066,536 0.69 12,532,153 2.84 France (17.71%) Aerospace and Defence

14,881 Air France - KLM ............... 82,500 0.02 94,434 Safran SA ............................ 2,188,036 0.50 47,802 Thales SA ........................... 1,125,737 0.25

Auto Components

27,813 Cie Generale des Etablissements Michelin ..... 1,257,148 0.28

67,637 Valeo ................................... 2,154,238 0.49 Automobiles

14,575 Peugeot SA ......................... 235,605 0.05 17,169 Renault SA .......................... 430,341 0.10

Banks 266,503 BNP Paribas ........................ 8,007,083 1.81

81,887 Credit Agricole SA ............. 427,941 0.10 89,202 Natixis ................................. 212,479 0.05 43,831 Societe Generale ................. 874,867 0.20

Chemicals 24,736 Arkema SA ......................... 1,087,395 0.25

Commercial Services and Supplies 3,060 Groupe Steria SCA ............. 38,632 0.01

46,104 Sodexho .............................. 2,283,762 0.52 Communication Equipment

118,724 France Telecom SA ............ 1,459,118 0.33 Computers and Peripherals

10,930 Alten Ltd ............................. 221,879 0.05 Construction and Engineering

10,574 Aeroports de Paris ............... 596,902 0.13 8,105 Bouygues SA ...................... 201,977 0.05

Construction Material 69,672 Cie de Saint-Gobain ............ 2,011,082 0.46

813 Ciments Francais SA .......... 50,682 0.01 19,360 Lafarge ................................ 503,360 0.11 1,174 SA des Ciments Vicat ......... 57,274 0.01

Diversified Financials 27,909 Eurazeo ............................... 887,088 0.20

Electric Utilities 29,873 Electricite de France ........... 651,530 0.15 57,816 GDF Suez ........................... 1,297,391 0.29

Electrical Equipment 20,000 Legrand SA ......................... 469,800 0.11 2,697 Nexans SA .......................... 118,034 0.03 7,950 Rexel Distribution ............... 89,159 0.02

37,360 Saft Groupe SA ................... 754,299 0.17 51,508 Schneider Electric SA ......... 2,086,589 0.47

Energy Equipment and Services

17,310 Companie Generale de Geophysique ....................... 233,425 0.05




Number of Shares

Fair Value EUR

Fund %

Food Products 134,139 Carrefour SA ....................... 2,299,143 0.52

5,347 Casino Guichard Perrachon SA ....................................... 313,869 0.07

5,160 Groupe Danone ................... 237,850 0.06 Hotels, Restaurants and Leisure 2,420 Club Mediterranee ............... 31,399 0.01 406 Pierre & Vacances ............... 12,156 0.00 Household Products 25,970 Societe BIC SA ................... 1,657,405 0.38 Insurance 405,894 AXA Insurance SA .............. 4,018,351 0.91 20,500 Scor SE ................................ 330,767 0.07 IT Consulting and Services 79,821 Cap Gemini SA ................... 2,001,911 0.45 Lodging 50,000 Accor SA ............................. 1,007,000 0.23 Media 29,898 Havas SA ............................. 82,369 0.02 138,487 Lagardere SCA .................... 2,555,778 0.58 140,546 Publicis Groupe SA ............. 4,411,739 1.00 5,458 Teleperformance ................. 87,055 0.02 350,826 Vivendi Universal ............... 5,378,162 1.21 Multi-Line Retail 18,242 PPR ..................................... 1,777,136 0.40 9,413 Rallye .................................. 203,462 0.05 Oil and Gas 22,675 Technip SA ......................... 1,371,611 0.31 135,266 Total SA .............................. 4,493,537 1.02 52,900 Total SA ADR ..................... 1,730,082 0.39 Personal Products 14,713 Christian Dior SA ................ 1,242,807 0.28 Pharmaceuticals 97,978 Sanofi-Aventis ..................... 4,835,214 1.09 Real Estate 68,061 ANF REIT ........................... 2,090,834 0.47 3,187 Nexity .................................. 66,258 0.02 Real Estate Investment Trusts

2,740 Fonciere Des Regions REIT .................................... 143,439 0.03

4,530 Gecina SA REIT ................. 297,848 0.07 5,410 ICADE REIT ....................... 318,108 0.07 9,825 Unibail REIT ....................... 1,320,971 0.30 Software 138,974 UBISOFT Entertainment ..... 567,292 0.13 Textile and Apparel

10,845 LVMH Moet Hennessy Louis Vuitton SA ................ 1,080,704 0.24

Transportation Equipment 24,973 Groupe Eurotunnel SA ........ 159,577 0.04 78,219,187 17.71

Number of Shares

Fair Value EUR

Fund %

Germany (16.53%) Air Freight and Couriers

128,422 Deutsche Post AG ............... 1,228,870 0.28 Airlines

68,276 Deutsche Lufthansa AG ...... 662,277 0.15 Automobiles

15,055 Bayerische Motoren Werke AG ...................................... 747,782 0.17

111,343 DaimlerChrysler AG ........... 3,701,598 0.84 1,570 Volkswagen AG .................. 146,010 0.03

Banks 27,070 Aareal Bank AG ................. 314,283 0.07

1,083,724 Commerzbank AG .............. 2,046,071 0.47 161,094 Deutsche Bank AG ............. 4,210,191 0.95

Building Products 979 Bauer AG ............................ 16,868 0.00

5,137 Pfleiderer AG ...................... 2,281 0.00 Chemicals

70,867 BASF SE ............................ 3,246,063 0.73 126,016 Bayer AG ............................ 5,188,079 1.17

9,460 K&S AG ............................. 372,819 0.08 11,700 Lanxess AG ........................ 420,205 0.10 14,969 Wacker Chemie AG ............ 999,779 0.23

Computers and Peripherals 47,582 Wincor Nixdorf AG ............ 1,601,134 0.36

Construction and Engineering 60,408 Bilfinger Berger AG ........... 3,400,970 0.77

14,849

Fraport AG Frankfurt Airport Services Worldwide .......................... 656,400 0.15

30,245 HeidelbergCement AG ....... 823,723 0.19 450 Hochtief AG ....................... 21,101 0.00

Containers and Packaging 20,791 Gerresheimer ...................... 650,966 0.15

Diversified Financials 51,014 Deutsche Boerse AG ........... 1,914,046 0.43 9,771 IVG Immobilien AG ........... 25,893 0.01

Diversified Telecommunications 296,866 Deutsche Telekom AG ........ 2,605,296 0.59

Electric Utilities 66,497 E.ON AG ............................ 1,077,916 0.24 12,111 RWE AG ............................. 334,809 0.08

Electrical Equipment

16,835 Norddeutsche Affinerie AG ...................................... 640,572 0.14

31,059 SMA Solar Technology AG ...................................... 1,216,270 0.28

Energy Equipment and Services 72,923 Q-Cells AG ......................... 42,368 0.01

Food Products 58 Sudzucker AG ..................... 1,231 0.00



Number of Shares

Fair Value EUR

Fund %

Health Care Providers and Services 50,234 Celesio AG .......................... 494,956 0.11 27,325 Fresenius SE ........................ 1,816,839 0.41 3,805 Rhoen Klinikum AG ........... 57,532 0.02 Holding Companies - Diversified Operations 108,579 GEA Group AG ................... 1,898,504 0.43 Household Products 36,595 Henkel KGaA ...................... 1,194,644 0.27 Industrial Conglomerates 66,994 Rheinmetall AG .................. 2,362,208 0.53 50,287 Siemens AG ........................ 3,390,350 0.77 Insurance 122,284 Allianz SE ........................... 8,602,679 1.95

29,637 Muenchener Rueckversicherungs AG ...... 2,758,612 0.62

Iron and Steel 2,933 Salzgitter AG ....................... 105,573 0.02 Leisure Equipment and Products 8,203 TUI AG ............................... 31,532 0.01 Machinery 1,020 Duerr AG ............................. 24,786 0.01

19,257 Heidelberger Druckmaschinen AG ........... 29,925 0.01

4,553 Linde AG ............................. 457,577 0.10 7,000 MAN SE .............................. 407,750 0.09 Manufacturing 16 KSB AG .............................. 7,848 0.00 Media

21,924 Kabel Deutschland Holding AG ....................................... 877,618 0.20

600,062 Sky Deutschland AG ........... 1,150,319 0.26 Metals and Mining 13,368 Kloeckner & Co AG ............ 124,082 0.03 24,274 Thyssenrkupp AG ............... 446,642 0.10 Multi-Line Retail 8,017 Praktiker Bau Holdings ....... 25,414 0.01 Pharmaceuticals 2,531 Merck KGAA ...................... 155,049 0.04 603 Stada Arzneimittel AG ........ 9,485 0.00 Real Estate 60,194 Deutsche Wohnen AG ......... 601,940 0.13

327,715 TAG Tegernsee Immobilien und Beteiligungs AG ........... 1,976,777 0.45

Semiconductor Equipment and Products

37,829 Dialog Semiconductor Plc ....................................... 485,157 0.11

120,000 Infineon Technologies AG ....................................... 665,760 0.15

Software 53,285 SAP AG ............................... 2,027,761 0.46 Textile and Apparel 55,054 Adidas AG ........................... 2,505,232 0.57 73,008,422 16.53

Number of Shares

Fair Value EUR

Fund %

Greece (0.02%) Banks

1,179 Alpha Bank AE ................... 1,532 0.00 1,169 Piraeus Bank SA ................. 538 0.00


13,281 Hellenic Technodomiki TEV SA ....................................... 19,257 0.01

Health Care Providers and Services

25,137 Diagnostic & Therapeutic Center of Athens Hygeia ..... 6,536 0.00

Metals and Mining

4,929 Sidenor Steel Production & Manufacturing Co SA ......... 9,464 0.00

12,079 Viohalco SA ....................... 39,498 0.01 Other Finance

78,291 Marfin Investment Group ... 18,790 0.00 Real Estate

4,411 GEK Terna Holding Real Estate Construction ............. 5,205 0.00

100,820 0.02 Ireland (1.29%) Airlines

8,174 Aer Lingus Group Plc ......... 5,354 0.00 Banks

221,167 Bank of Ireland ................... 17,030 0.00 Construction Material

125,547 CRH Plc (Dublin Listing) ............................... 1,463,878 0.33

110,000 CRH Plc (London Listing) ............................... 1,289,200 0.29

Entertainment 64,692 Paddy Power Plc ................. 2,501,963 0.57

Industrial Suppliers 23,881 Grafton Group ..................... 63,308 0.02

Paper and Forest Products

74,052 Smurfit Kappa Group (B Shares) ................................ 335,678 0.08

5,676,411 1.29 Italy (4.52%) Aerospace and Defence

23,571 Finmeccanica SpA .............. 122,805 0.03 Auto Components

84,831 Pirelli & Co ......................... 445,363 0.10 Automobiles

26,025 Fiat Industrial SpA .............. 106,442 0.02 Banks

87,527 Banca Monte dei Paschi di Siena ................................... 36,061 0.01

10,792 Banca Popolare dell'Etruria e del Lazio ............................. 15,832 0.00

19,789 Banca Popolare di Milano ................................. 35,818 0.01

162,631 Banco Popolare SpA ........... 202,801 0.05 3,158 Credito Valtellinese ............ 7,042 0.00




Number of Shares

Fair Value EUR

Fund %

930,209 Intesa Sanpaolo SpA ........... 1,102,298 0.25 2,839,123 UniCredito Italiano SpA ...... 2,272,718 0.51

41,791 Unione di Banche Italiane SCPA ................................... 115,761 0.03

Building Products 5,894 Buzzi Unicem SpA .............. 35,423 0.01 Commercial Services and Supplies 293,488 Atlantia SpA ........................ 3,119,777 0.71

15,100 Autostrada Torino Milano SpA ..................................... 105,700 0.02

Construction and Engineering 60,685 Gemina ................................ 35,804 0.01 Construction Material 10,164 Italcementi SpA ................... 44,823 0.01 401 Italmobiliare SpA ................ 7,904 0.00 Diversified Telecommunications 1,617,905 Telecom Italia SpA .............. 1,316,974 0.30

1,214,944

Telecom Italia SpA (Cumulative Participating Shares) ................................. 874,760 0.20

Electric Utilities 720,673 Enel SpA ............................. 2,378,221 0.54 Energy Equipment and Services 33,880 Saipem SpA ......................... 894,432 0.20 Food Products 6,147 Parmalat SpA ...................... 9,743 0.00 Health Care Equipment and Supplies 68,302 DiaSorin SpA ...................... 1,856,448 0.42 Home Furnishings 61,060 De'Longhi SpA .................... 406,049 0.09 Insurance 4,075 Fondiaria Sai SpA ............... 6,235 0.00 129,886 Unipol SpA ......................... 40,005 0.01 Iron and Steel 4,857 Cementir .............................. 7,694 0.00 Leisure Equipment and Products 30,123 IMMSI ................................. 17,471 0.00 Medical Technology 39,790 Sorin SpA ............................ 64,261 0.01 Multi-Line Retail 239,331 Autogrill SpA ...................... 1,806,949 0.41 Oil and Gas 104,960 ENI SpA .............................. 1,377,075 0.31 6,396 ERG SpA ............................. 52,959 0.01 Personal Products 14,930 Safilo Group ........................ 85,698 0.02 Pharmaceuticals 80,160 Recordati SpA ..................... 517,834 0.12 Real Estate Investment Trusts 509,000 Beni Stabili SpA REIT ........ 198,510 0.05 Textile and Apparel 6,720 Benetton Group SpA ........... 28,748 0.01

Number of Shares

Fair Value EUR

Fund %

3,479 Tod’s SpA ........................... 220,917 0.05 19,973,355 4.52 Liechtenstein (0.01%) Banks

340 Verwaltungs-U.Privat Bank AG ...................................... 25,877 0.01

Luxembourg (0.51%) Iron and Steel

1,816 APERAM ............................ 19,940 0.00 101,185 ArcelorMittal NPV ............. 1,222,315 0.28

Real Estate 182,971 Gagfah SA .......................... 829,590 0.19

Wireless Telecommunication Services

2,680 Millicom International Cellular SA ......................... 199,072 0.04

2,270,917 0.51 Netherlands (8.92%) Aerospace and Defence

192,616

European Aeronautic Defence and Space Co NV ...................................... 4,084,422 0.92

Banks 14,331 SNS Reaal Groep NV ......... 27,186 0.01

Beverages 40,000 Heineken Holdings NV ....... 1,341,600 0.30

Chemicals 11,766 Akzo Nobel NV .................. 392,102 0.09 43,245 Koninklijke DSM NV ......... 1,421,679 0.32

Commercial Services and Supplies 50,000 Randstad Holding NV ......... 1,206,000 0.27

Computers and Peripherals 14,463 Gemalto NV ........................ 516,040 0.12


9,566 Koninklijke BAM Groep NV ...................................... 29,033 0.01

Diversified Financials 1,305 Ten Cate Koninklijke .......... 30,204 0.01

Diversified Telecommunications 21,200 Koninklijke KPN NV .......... 209,859 0.05

Food Products 80,350 CSM NV ............................. 1,194,805 0.27

243,405 Koninklijke Ahold NV ........ 2,145,858 0.48 161,031 Unilever NV ....................... 3,825,291 0.87

Health Care Equipment and Supplies 1,071 Qiagen NV .......................... 11,085 0.00

Household Durables

46,981 Koninklijke Philips Electronics NV .................... 635,888 0.14

Insurance 368,585 Aegon NV ........................... 1,129,345 0.26

1,532,670 ING Groep NV ................... 8,173,729 1.85



Number of Shares

Fair Value EUR

Fund %

Media 289,089 Reed Elsevier NV ................ 2,376,023 0.54 Oil and Gas 218,259 Royal Dutch Shell Plc ......... 5,058,152 1.14 Pharmaceuticals 112,258 Mediq NV ........................... 1,277,496 0.29 Semiconductor Equipment and Products 8,273 ASM International NV ........ 155,491 0.04 49,693 ASML Holding NV ............. 1,295,993 0.29 56,706 STMicroelectronics NV ...... 279,901 0.06 Transportation Equipment 275,964 TNT Express NV ................. 1,439,152 0.33 351,482 TNT NV .............................. 1,162,703 0.26 39,419,037 8.92 Norway (3.49%) Aerospace and Defence 119,934 Kongsberg Gruppen ............ 1,560,625 0.35 Banks 3,339 SpareBank 1 SMN ............... 16,489 0.00 Chemicals 5,810 Yara International ASA ....... 167,799 0.04 Commercial Services and Supplies

6,910 TGS-NOPEC Geophysical Co ASA ............................... 96,670 0.02

Construction and Engineering 73,366 Subsea 7 SA ........................ 1,050,598 0.24 Diversified Telecommunications 10,908 Telenor ASA ....................... 126,083 0.03 Energy Equipment and Services 80,361 Fred Olsen Energy ASA ...... 1,714,926 0.39 28,480 Seadrill Ltd .......................... 594,032 0.13 58,000 Sevan Marine ASA .............. 3,461 0.00 Environmental Control 207,930 Tomra Systems ASA ........... 995,156 0.23 Food Products 18,100 Cermaq ASA ....................... 144,761 0.03 119,480 Marine Harvest .................... 38,982 0.01 570,851 Orkla ASA ........................... 3,264,026 0.74 Insurance

138,664 Gjensidige Forsikring ASA ..................................... 1,070,286 0.24

132,185 Storebrand ASA .................. 498,392 0.12 Media 104,220 Schibsted ASA .................... 1,672,363 0.38 Oil and Gas

890,400 Det Norske Oljeselskap ASA - A Shares ............................ 613,787 0.14

6,668 Det Norske Oljeselskap ASA - B Shares ............................ 39,786 0.01

73,506 Norsk Hydro ASA ............... 252,512 0.06 255,310 North Energy ASA .............. 622,302 0.14 19,499 Norwegian Energy ............... 10,124 0.00

Number of Shares

Fair Value EUR

Fund %

48,420 Statoil ASA ......................... 777,585 0.17 Semiconductor Equipment and Products

42,017 Renewable Energy Corp ASA .................................... 27,924 0.01

Transportation Equipment 16,807 Songa Offshore SE ............. 39,259 0.01

15,397,928 3.49 Poland (0.10%) Banks

21,503

Powszechna Kasa Oszczednosci Bank Polski SA ....................................... 160,036 0.03

Metals and Mining 10,241 KGHM Polska Miedz SA ... 302,693 0.07

462,729 0.10 Portugal (1.11%) Construction Material

7,577

Semapa Sociedade Investimento E Gestao SGPS ................................... 39,681 0.01

Food Products 173,496 Jeronimo Martins SGPS SA 2,037,711 0.46

Oil and Gas 201,614 Galp Energia SGPS ............. 2,769,168 0.63

Paper and Forest Products

41,609 Portucel Empresa Produtora de Pasta de Papel SA .......... 72,649 0.01

4,919,209 1.11 Russia (0.42%) Banks

73,172 VTB Bank OJSC GDR ....... 225,455 0.05 Chemicals

19,027 Uralkali GDR ...................... 489,112 0.11 Oil and Gas

13,096 NovaTek OAO GDR .......... 1,133,223 0.26 1,847,790 0.42 Spain (6.43%) Banks

333,653 Banco Bilbao Vizcaya Argentaria SA ..................... 2,061,642 0.47

70,434 Banco de Sabadell SA ......... 188,341 0.04 6,803 Banco Enol De Credito SA . 30,600 0.01 2,735 Banco Pastor SA ................. 7,863 0.00

74,360 Banco Popular Espanol SA . 258,698 0.06

153,028 Banco Santander Central Hispano SA ......................... 951,834 0.21

158,221 Bankinter SA ...................... 647,757 0.15 1,873 Bankinter SA (Non-voting) . 7,668 0.00

Construction and Engineering 3,528 Acciona SA ......................... 224,557 0.05

3,632 Formento de Construcciones y Contratas SA .................... 67,555 0.02




Number of Shares

Fair Value EUR

Fund %

64,328 Obrascon Huarte Lain SA ....................................... 1,195,858 0.27

10,305 Sacyr Vallehermoso SA ...... 43,580 0.01 Construction Material 2,005 Cementos Portland .............. 21,133 0.00 Diversified Financials

98,807 Bolsas y Mercados Espanoles ............................ 1,982,563 0.45

2,264 Criteria Caixacorp ............... 7,514 0.00 Diversified Telecommunications 344,216 Telefonica SA ...................... 4,956,710 1.12 Electric Utilities 20,100 Endesa SA ........................... 350,343 0.08 303,455 Iberdrola SA ........................ 1,538,820 0.35 Electrical Equipment

6,380 Gamesa Corp Tecnologica SA ....................................... 21,584 0.01

Energy Equipment and Services 20,626 EDP Renovaveis SA ............ 84,360 0.02

40,027 Industria de Diseno Textil SA ....................................... 2,573,336 0.58

53,344 Red Electrica Corp SA ........ 1,823,831 0.41 Food Products

235,054 Distribuidora Internacional de Alimentacion SA ............ 698,581 0.16

18,712 Viscofan SA ........................ 504,288 0.11 Gas Utilities 21,700 Enagas ................................. 299,677 0.07 114,938 Gas Natural SDG SA ........... 1,468,908 0.33 Hotels, Restaurants and Leisure 6,749 NH Hoteles SA .................... 21,158 0.01 Machinery 47,510 Duro Felguera SA ............... 222,347 0.05 Media

12,350 Promotora de Informaciones ...................... 9,942 0.00

Oil and Gas 219,303 Repsol YPF SA ................... 4,367,419 0.99 Paper and Forest Products

10,689 Grupo Empresarial Ence ..................................... 20,683 0.00

Software 145,150 Amadeus IT Holding SA ..... 1,749,783 0.40 28,408,933 6.43 Sweden (6.06%) Aerospace and Defence 46,930 Saab AB .............................. 629,973 0.14 Agriculture 43,798 Swedish Match .................... 1,083,179 0.25 Auto Components 22,740 Trelleborg AB ..................... 110,775 0.02 Automobiles 146,529 Scania AB ........................... 1,577,382 0.36

Number of Shares

Fair Value EUR

Fund %

Banks 13,482 Nordea Bank AB ................. 82,077 0.02

178,450 Skandinaviska Enskilda Banken ................................ 723,671 0.16

87,580 Svenska Handelsbanken AB 1,667,002 0.38 58,487 Swedbank AB ..................... 485,854 0.11

Building Products 142,960 Assa Abloy AB ................... 2,210,706 0.50

Commercial Services and Supplies 216,698 Securitas AB ....................... 1,187,539 0.27

Communication Equipment

292,080

Ericsson (L.M.) Telefonaktiebolaget (A Shares) ................................ 2,107,779 0.47

508

Ericsson (L.M.) Telefonaktiebolaget (B Shares) ................................ 3,481 0.00

1,811 Tele2 AB ............................. 24,743 0.01 272,883 TeliaSonera AB .................. 1,351,524 0.31

Construction and Engineering 30,702 JM AB ................................ 294,857 0.07

136,648 NCC AB ............................. 1,672,684 0.38 Food Products

8,610 Axfood AB ......................... 219,757 0.05 Hand and Machine Tools

94,000 Sandvik AB ......................... 815,545 0.18 Household Durables

621 Electrolux AB ..................... 6,833 0.00 Industrial Conglomerates

36,620 Volvo AB - A Shares .......... 271,816 0.06 88,378 Volvo AB - B Shares .......... 654,079 0.15

Machinery 44,254 Atlas Copco AB .................. 590,690 0.13

312,894 Husqvarna AB .................... 949,371 0.22 Metals and Mining

207,205 Boliden AB ......................... 1,613,332 0.36

17,122 SSAB Svenskt Stal AB (A Shares) ................................ 95,689 0.0

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